Comparative Advantage in (Non-)Routine Production

Archanskaia L, Van Biesebroeck J, Willmann G (2020) Universität Bielefeld Working Papers in Economics and Management; 03-2020.
Bielefeld: Bielefeld University, Department of Business Administration and Economics.

Diskussionspapier | Veröffentlicht | Englisch
 
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Archanskaia, Liza; Van Biesebroeck, Johannes; Willmann, GeraldUniBi
Abstract / Bemerkung
We illustrate a new source of comparative advantage that is generated by countries’ different ability to adjust to technological change. Our model in- troduces substitution of workers in codifiable (routine) tasks with more ef- ficient machines, a process extensively documented in the labor literature, into a canonical 2 × 2 × 2 Heckscher-Ohlin model. Our key hypothesis is that labor reallocation across tasks is subject to frictions, the importance of which varies by country. The arrival of capital-augmenting innovations trig- gers the movement of workers out of routine tasks, and countries with low labor market frictions become relatively abundant in non-routine labor. In the new equilibrium, more flexible countries specialize in producing goods that use non-routine labor more intensively. We document empirically that the ranking of countries with respect to the routine intensity of their exports is strongly related to labor market institutions and to cultural norms that influence adjustment to technological change, such as risk aversion or long- term orientation. The explanatory power of this mechanism for trade flows is especially strong for intra-EU trade.
Stichworte
Comparative advantage; resource allocation; routine tasks
Erscheinungsjahr
2020
Band
03-2020
Seite(n)
61
ISSN
2196-2723
Page URI
https://pub.uni-bielefeld.de/record/2942674

Zitieren

Archanskaia L, Van Biesebroeck J, Willmann G. Comparative Advantage in (Non-)Routine Production. Universität Bielefeld Working Papers in Economics and Management. Vol 03-2020. Bielefeld: Bielefeld University, Department of Business Administration and Economics; 2020.
Archanskaia, L., Van Biesebroeck, J., & Willmann, G. (2020). Comparative Advantage in (Non-)Routine Production (Universität Bielefeld Working Papers in Economics and Management, 03-2020). Bielefeld: Bielefeld University, Department of Business Administration and Economics. doi:10.4119/unibi/2942674
Archanskaia, L., Van Biesebroeck, J., and Willmann, G. (2020). Comparative Advantage in (Non-)Routine Production. Universität Bielefeld Working Papers in Economics and Management, 03-2020, Bielefeld: Bielefeld University, Department of Business Administration and Economics.
Archanskaia, L., Van Biesebroeck, J., & Willmann, G., 2020. Comparative Advantage in (Non-)Routine Production, Universität Bielefeld Working Papers in Economics and Management, no.03-2020, Bielefeld: Bielefeld University, Department of Business Administration and Economics.
L. Archanskaia, J. Van Biesebroeck, and G. Willmann, Comparative Advantage in (Non-)Routine Production, Universität Bielefeld Working Papers in Economics and Management, vol. 03-2020, Bielefeld: Bielefeld University, Department of Business Administration and Economics, 2020.
Archanskaia, L., Van Biesebroeck, J., Willmann, G.: Comparative Advantage in (Non-)Routine Production. Universität Bielefeld Working Papers in Economics and Management, 03-2020. Bielefeld University, Department of Business Administration and Economics, Bielefeld (2020).
Archanskaia, Liza, Van Biesebroeck, Johannes, and Willmann, Gerald. Comparative Advantage in (Non-)Routine Production. Bielefeld: Bielefeld University, Department of Business Administration and Economics, 2020. Universität Bielefeld Working Papers in Economics and Management. 03-2020.
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